It was revealed today that CBN directed Deposit Money Banks to remove the rate cap on the naira at the Investors and Exporters’ (I&E) Window of the foreign exchange market, to allow for a free float of the national currency against the dollar and other global currencies. The development came barely two weeks after Tinubu promised to unify the nation’s multiple exchange rates. Following the CBN announcement, the naira depreciated to over N700/dollar during trading on the I&E window today.

It is no longer news that Nigeria today is an import-dependent populous country with limited sources of foreign exchange. Since Nigeria economy majorly is import driven, the implication is that the demand for foreign exchange will always be higher than the supply. Under such circumstances, it is certain that allowing a free-float of the naira will have a negative impact on the currency, leading to poor exchange rate and inflation. While the inflation will impoverish the masses and lead to low demand for goods and services, the low Naira value will not lead to higher inflow of foreign currencies due to other factors such as security challenges, corruption, lack of electricity and other infrastructure deficits will limit the readiness of foreign investors to rush to Nigeria with euros and dollars. Above all, the country will pay more to service her dollar and euro-domiciled foreign loans.

It is important to note that many developed countries don't allow a free-float of their currencies, rather, they use a combination of fiscal and monetary polices to control the exchange rate. For example, EU raises interest rates to combat inflation as against euro currency. After the EU central bank increased interest rates, the euro strengthened. Nigeria has no access to such instruments. This move by CBN and Tinubu's APC government to free-float the naira will be another economic disaster (Post-Buhari era) if not properly managed.

The bottom line is that with the ill-advised free-float of the naira, inflation will increase, the people will be poorer and jobs will be lost. The government should have put in place moderate control mechanism before adopting a free-float of the currency, unfortunately this is Tinubu's style of dishing out sensitive policies without proper planning as we all witnessed how he removed fuel subsidy during the presidential swearing-in ceremony. As I said in previous post, the illegitimate Tinubu's APC government can not be trusted to offer any meaningful economic progress to Nigeria. This APC government definitely will continue the economic woes that plagued Buhari's era. Nigerians who think that Tinubu will be different from Buhari are only been sentimental and naive to their own detriment. The person occupying the office of the president may be different but this is still the same APC government that brought Nigeria to it's current economic sad state. Even Tinubu told Nigerians that "he will continue from where Buhari stopped", it is foolish to expect anything different from his government. Nigerians must reject these ANTI-PEOPLE policies!

Another price increase on fuel due to this devaluation is beckoning as we import our fuel, imagine people who source dollars at 461 to import fuel now source for dollar at 600 and above. Then it's effect on other goods and services hmm

Free floating of the naira is like tying the excess demand of dollar emanating from toothpick, toothbrush, red oil iPhone and leisurely things importers generally to the demand of dollar for import of machines and industrial raw materials.

You merged the pressure of leisurely and luxurious driven consumption with critical aspects of the economy and say you are inspiring investors confidence. This was how the preceding disaster started justifying actions with abstract yardsticks and guaging people's heart and repentance level before crashing the whole system then blaming a CBN gov.

The govt again has failed in curtailing the corrupt practice of roundtriping of dollar from the lower exchange rate window meant for productive imports into black market meant for leisurely imports and as part of their addiction to buck-passing, have chosen the past CBN gov to blame.

Naira has been devalued since the day dumb citizens started shouting "we need change". Citizens that went from godlike living to Omo e too cost o, how much you go comot for me?.

Nigerians don't want to sacrifice anything for their country.

They will rather Japa to another one built with sweat and blood.

Anyway Asiwaju is here to force you people to have sense.

mokset123:
Another price increase on fuel due to this devaluation is beckoning as we import our fuel, imagine people who source dollars at 461 to import fuel now source for dollar at 600 and above. Then it's effect on other goods and services hmm

They only knows how to increase suffering.

I'm surprised that nobody has said "igbo" , "loser" "obituary" etc on this thread. We hadly enjoy cerebral discussion because of these miscreants

nothingspoil70:
Nigerians don't want to sacrifice anything for their country.

They will rather Japa to another one built with sweat and blood.

Anyway Asiwaju is here to force you people to have sense.

oloriburuku the defender of a senseless presidiot what exactly is Nigerians benefitting from the govt?no susbisidy on kero,no subsidy on gas, no subsidy on petrol, school fees is about to go out of reach of the poor man children,no infrastructure no stable light all we get is politicians looting for themselves and their families yet you bastard keep defending Ojuyobo because he is a Yoruba sango loma pa e tiran tiran

The half baked supporters sha like to dey argue on things they have only little idea about.

So so dey argued blindly through out the electioneering period

Please can you name any country in the world that’s practicing double exchange rate like Nigeria has been doing in the last 8 years?

Tinubu is a time bomb. I said it during his campaign and I keep saying it. Tinubu is a time bomb waiting for explosion. He said he would start from where Buhari stopped which means he will start destruction of economy from where his predecessor stopped. Buhari would always be remembered for damaging Nigeria economy.

Bebigiby1:
It was revealed today that CBN directed Deposit Money Banks to remove the rate cap on the naira at the Investors and Exporters’ (I&E) Window of the foreign exchange market, to allow for a free float of the national currency against the dollar and other global currencies. The development came barely two weeks after Tinubu promised to unify the nation’s multiple exchange rates. Following the CBN announcement, the naira depreciated to over N700/dollar during trading on the I&E window today.

It is no longer news that Nigeria today is an import-dependent populous country with limited sources of foreign exchange. Since Nigeria economy majorly is import driven, the implication is that the demand for foreign exchange will always be higher than the supply. Under such circumstances, it is certain that allowing a free-float of the naira will have a negative impact on the currency, leading to poor exchange rate and inflation. While the inflation will impoverish the masses and lead to low demand for goods and services, the low Naira value will not lead to higher inflow of foreign currencies due to other factors such as security challenges, corruption, lack of electricity and other infrastructure deficits will limit the readiness of foreign investors to rush to Nigeria with euros and dollars. Above all, the country will pay more to service her dollar and euro-domiciled foreign loans.

It is important to note that many developed countries don't allow a free-float of their currencies, rather, they use a combination of fiscal and monetary polices to control the exchange rate. For example, EU raises interest rates to combat inflation as against euro currency. After the EU central bank increased interest rates, the euro strengthened. Nigeria has no access to such instruments. This move by CBN and Tinubu's APC government to free-float the naira will be another economic disaster (Post-Buhari era) if not properly managed.

The bottom line is that with the ill-advised free-float of the naira, inflation will increase, the people will be poorer and jobs will be lost. The government should have put in place moderate control mechanism before adopting a free-float of the currency, unfortunately this is Tinubu's style of dishing out sensitive policies without proper planning as we all witnessed how he removed fuel subsidy during the presidential swearing-in ceremony. As I said in previous post, the illegitimate Tinubu's APC government can not be trusted to offer any meaningful economic progress to Nigeria. This APC government definitely will continue the economic woes that plagued Buhari's era. Nigerians who think that Tinubu will be different from Buhari are only been sentimental and naive to their own detriment. The person occupying the office of the president may be different but this is still the same APC government that brought Nigeria to it's current economic sad state. Even Tinubu told Nigerians that "he will continue from where Buhari stopped", it is foolish to expect anything different from his government. Nigerians must reject these ANTI-PEOPLE policies!

Beautiful. Nigeria situation defies all known economic theories due to unchecked corruption

Another tough but good move.
It is ridiculous to keep capping the official rate accessible to a few, while the black market rate is so high. That gap creates a lot of round tripping and high demand for dollars driven by those making a killing from bureau de change business.

Cry, weed, wail, but conserve your energy because you will be weeping for 8 years

This is where obi Pandora losers and cult members gather to exchange their daily crying and wailing anti Nigerian pleasantries?..

Una need PTSD treatment and Yaba Left therapy...

seanfer:
Please can you name any country in the world that’s practicing double exchange rate like Nigeria has been doing in the last 8 years?

There is no country that u won't see BDC operators and demand drives d market so yah almost all countries run double exchange rate, go to Egypt or Benin or even Niger with ur naira to any BDC operator and see whether u would change at official rate

🤔🤔🤔
How do you want to look at it?
Currently the last administration has amassed so much debt in dollars that it is an issue!
Likewise the last administration has dollar revenue problems due to oil theft.
What does it mean
In one budgetary year at mid way the fg has no funds to keep it afloat.
That is the problem the current govt is facing.
The funny thing is that the last govt had already took loans leaving the new govt till next year before it can think of accessing loans.
(Y✍️✍️✍️✍️buhari was smart)
So what do you think tinubu should do🙄🙄

They are basically short term solutions✍️✍️✍️✍️✍️

There are options to solve his economic problems of his government.
These decisions require work,economic techs and a strong drive.
There are also short term solutions like what he has done but 🤔🤔😳😳

OP why not give an example of a develop country that runs two currency market,

Fo decades Govt have being subsidizing fuel and subsidizing FX, what did the common man gain, asides marketers getting richer and burea de change getting richer what did it stop the so much talked about inflation or benefit the poor majority.
There was a time Obedient were citing Kenyan, i encourage them to go read on kenyan president position on "dollar"

We can't keep doing things the same way and expect result, no path to success is smooth & convenient as Peter Obi as radicalized children of hate to think.

Few people of affluence are only benefiting from the CBN dollar and making exorbitant gains in the parallel market ..
an open market brings competition that gives a level playing ground which facilitates productivity.
Govt role is to provide an enabling ground, investors will do the needful that will reflect economic growth, o tan

It is glaring to any sane Nigerian that Tinubu is only doing the bidding of his international handlers (US, IMF, France et al). Ask yourself why is the US hypocritical government not pushing for democratic principles to be respected over the outcome of 2023 fraudulent presidential election that we all know Tinubu didn't win....Tinubu certainly will be a puppet to the western powers who have been pushing for Nigeria government to implement fuel subsidy removal and some other policies you seeing today.... APC was not the popular party before the election and still not the party sane progressive Nigerians want to see manage the affairs of the nation.... There is no doubt that these policies already is affecting Nigerians and the economy negatively....

mokset123:
Another price increase on fuel due to this devaluation is beckoning as we import our fuel, imagine people who source dollars at 461 to import fuel now source for dollar at 600 and above. Then it's effect on other goods and services hmm

You do have a point as critical sectors of the economy like local manufacturers and producers of agricultural exports (Forex inflows) are now adversely affected due to the volatility of FX "market forces"..... this policy will surely affect Nigeria's forex inflows negatively as these businesses that import or export "manufacturing machines and industrial raw materials" may no longer be able to compete in the international market.... It is sad that many Nigerians don't know how bad this policy will affect them....

CodeTemplar:
Free floating of the naira is like tying the excess demand of dollar emanating from toothpick, toothbrush, red oil iPhone and leisurely things importers generally to the demand of dollar for import of machines and industrial raw materials.

You merged the pressure of leisurely and luxurious driven consumption with critical aspects of the economy and say you are inspiring investors confidence. This was how the preceding disaster started justifying actions with abstract yardsticks and guaging people's heart and repentance level before crashing the whole system then blaming a CBN gov.

The govt again has failed in curtailing the corrupt practice of roundtriping of dollar from the lower exchange rate window meant for productive imports into black market meant for leisurely imports and as part of their addiction to buck-passing, have chosen the past CBN gov to blame.

mokset123:
Another price increase on fuel due to this devaluation is beckoning as we import our fuel, imagine people who source dollars at 461 to import fuel now source for dollar at 600 and above. Then it's effect on other goods and services hmm

I feel sorry for Nigerians, it’s going to get worse before it gets better!

Ruggedniggaone:
oloriburuku the defender of a senseless presidiot what exactly is Nigerians benefitting from the govt?no susbisidy on kero,no subsidy on gas, no subsidy on petrol, school fees is about to go out of reach of the poor man children,no infrastructure no stable light all we get is politicians looting for themselves and their families yet you bastard keep defending Ojuyobo because he is a Yoruba sango loma pa e tiran tiran

Defending their oppressors is the staple of members of Dundee United . They keep saying poverty stricken masses should sacrifice, but won't tell the politicians that looted billions of dollars to make any sacrifices.

Bebigiby1:
It was revealed today that CBN directed Deposit Money Banks to remove the rate cap on the naira at the Investors and Exporters’ (I&E) Window of the foreign exchange market, to allow for a free float of the national currency against the dollar and other global currencies. The development came barely two weeks after Tinubu promised to unify the nation’s multiple exchange rates. Following the CBN announcement, the naira depreciated to over N700/dollar during trading on the I&E window today.

It is no longer news that Nigeria today is an import-dependent populous country with limited sources of foreign exchange. Since Nigeria economy majorly is import driven, the implication is that the demand for foreign exchange will always be higher than the supply. Under such circumstances, it is certain that allowing a free-float of the naira will have a negative impact on the currency, leading to poor exchange rate and inflation. While the inflation will impoverish the masses and lead to low demand for goods and services, the low Naira value will not lead to higher inflow of foreign currencies due to other factors such as security challenges, corruption, lack of electricity and other infrastructure deficits will limit the readiness of foreign investors to rush to Nigeria with euros and dollars. Above all, the country will pay more to service her dollar and euro-domiciled foreign loans.

It is important to note that many developed countries don't allow a free-float of their currencies, rather, they use a combination of fiscal and monetary polices to control the exchange rate. For example, EU raises interest rates to combat inflation as against euro currency. After the EU central bank increased interest rates, the euro strengthened. Nigeria has no access to such instruments. This move by CBN and Tinubu's APC government to free-float the naira will be another economic disaster (Post-Buhari era) if not properly managed.

The bottom line is that with the ill-advised free-float of the naira, inflation will increase, the people will be poorer and jobs will be lost. The government should have put in place moderate control mechanism before adopting a free-float of the currency, unfortunately this is Tinubu's style of dishing out sensitive policies without proper planning as we all witnessed how he removed fuel subsidy during the presidential swearing-in ceremony. As I said in previous post, the illegitimate Tinubu's APC government can not be trusted to offer any meaningful economic progress to Nigeria. This APC government definitely will continue the economic woes that plagued Buhari's era. Nigerians who think that Tinubu will be different from Buhari are only been sentimental and naive to their own detriment. The person occupying the office of the president may be different but this is still the same APC government that brought Nigeria to it's current economic sad state. Even Tinubu told Nigerians that "he will continue from where Buhari stopped", it is foolish to expect anything different from his government. Nigerians must reject these ANTI-PEOPLE policies!

Beautiful hogwash!

There are no developed countries currently running a dual exchange rate system. Some countries (like China) have done it before but was for a short period. There are no long-term benefits of a dual exchange rate system. South Africa only did it for ten years in the past.

Short term effects of subsidy removal and unification of exchange rates are definitely going to be negative but it's going to be positive in the long run.

The problem about we black africans is we don't plan for our future generations decades to come. We're only concerned about immediate gains.

Our total debt is over 50 trillion naira and Nigeria spent 96.3 per cent of its 2022 revenue on debt servicing. Where should we find the money to pay our debts continually?

Moreover you are an Obedient and anti-Tinubu government so it doesn't matter what effort PBAT tries to make to set the country on the right path economically, you will never support it.

BannedUser:


Beautiful hogwash!

There are no developed countries currently running a dual exchange rate system. Some countries (like China) have done it before but was for a short period. There are no long-term benefits of a dual exchange rate system. South Africa only did it for ten years in the past.

Moreover you are an Obedient and anti-Tinubu government so it doesn't matter what effort PBAT tries to make to set the country on the right path economically, you will never support it.

Someone that could not set Ajegunle and Makoko on the right path and cornered 10% of Lagos tax revenue you thinks care about people outside Lagos and the other 35 states.

swaggerjack:


Someone that could not set Ajegunle and Makoko on the right path and cornered 10% of Lagos tax revenue you thinks care about people outside Lagos and the other 35 states.

Even NYC has a ghetto.

"Accused" is different from "Convicted"

I deal with evidence and facts.

Provide your evidence and support it with facts.

It's not about copying and pasting.

Abufo:


I feel sorry for Nigerians, it’s going to get worse before it gets better!

it would only get better if we kill the division along ethnic, religious lines and greed in us. Nation first before self

I agree Nigerians must rise above tribalism and religion....

mokset123:
it would only get better if we kill the division along ethnic, religious lines and greed in us. Nation first before self